3 ASX ETFs that can generate more cash than your savings account

Many investors target ASX ETFs to track the returns of global indexes or niche themes. But there are also funds that specifically focus on generating high yields.

A new report from Betashares has shed light on the dwindling returns available from traditional ‘safe havens’ like term deposits and savings accounts. 

However, according to APRA, Australians hold over $1.4 trillion in bank deposits.

Betashares said this continues to grow despite falling interest rates. This suggests many Australians are content with accepting these lower returns. 

Research shows some of the highest interest rates available for savings accounts hover around 4% to 4.5%. 

What’s more important, is these often come with fees, deposit or withdrawal limits, or revert back to lower rates after introductory periods. 

As of December 2025, the best 1-year term deposit rate you can find at any Big Four bank is 4%. 

With those figures in mind, if you are considering parking cash in a savings account or term deposit, these ASX ETFs might offer better returns than what your bank is offering. 

BetaShares S&P 500 Yield Maximiser Fund (ASX: UMAX)

The objective of this ASX ETF is to generate attractive quarterly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of stocks comprising the S&P 500 Index. 

It uses a covered-call strategy over the 500 largest stocks on Wall Street.

The result is regular income distributions (paid quarterly) that can be significantly higher than the regular dividend yield of the S&P 500 index.

It has a 12 month distribution yield of 5.3%. 

BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

This ASX ETF is essentially the Australian focussed version of the previous fund. 

According to Betashares, the fund gives exposure to the top 20 ASX shares and sells covered call options on up to 100% of its shares to generate additional income from the option premiums.

It has a 12 mth distribution yield of 8.2% (paid quarterly). 

In terms of the portfolio, its largest exposure is to:

• Commonwealth Bank of Australia (ASX: CBA) – 16.3%
• BHP Group (ASX: BHP) – 13.6%. 

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This is Vanguard’s ASX ETF focussed on high-dividends. 

According to Vanguard, the objective is to target companies that have higher forecast dividends relative to other ASX-listed companies.

It also has exposure to Australia’s largest blue-chip stocks like CBA and BHP.

The fund has historically provided a dividend yield around 5%.

The post 3 ASX ETFs that can generate more cash than your savings account appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.